On Tuesday, vertically integrated solar products manufacturer LDK Solar (OTC:LDKYQ) announced it has agreed to issue and sell 17 million new shares of common stock to Fulai Investment, a British Virgin Islands-registered investment firm owned and run by Hong Kong businessman Cheng Kin Ming.

LDK will sell the shares at $1.83 apiece, for a total purchase price of $31.1 million. Pursuant to the terms of the agreement, Fulai will be unable to resell the shares for 180 days after the transaction closes. The parties are aiming for a Feb. 28 closing date.

LDK was free cash flow-negative by more than $1.2 billion in 2011, the last year for which full-year figures are available. The company says it will use the funds generated from this sale for "general corporate purposes."

LDK shares are up 6.6% on the news, at $1.95.